NCLT orders winding up of Siraj-ul-Uloom Welfare Foundation

Nearly two months after Siraj-ul-Uloom in south Kashmir’s Shopian was declared an unlawful association under the Unlawful Activities (Prevention) Act (UAPA), the National Company Law Tribunal (NCLT) has ordered the winding up of Siraj-ul-Uloom Welfare Foundation, the non-profit company linked to the institution, and directed the appointment of a provisional liquidator to take charge of its affairs and assets.

The Chandigarh Bench of the NCLT passed the order on June 11 while hearing a petition filed by the Registrar of Companies (RoC), Jammu and Kashmir and Ladakh, under Sections 271 and 272 of the Companies Act.

In its eight-page order, the tribunal directed the Official Liquidator attached to the High Court of Jammu and Kashmir and Ladakh, who is also holding the charge of RoC J&K and Ladakh, to assume control of the company’s bank accounts, financial assets and properties as Provisional Liquidator. The tribunal also ordered the freezing of the organisation’s financial and physical assets and directed that all records be secured to prevent their removal, destruction or tampering.

The former directors of the company have been stripped of their powers and asked to submit a verified statement of affairs within the prescribed period.

The proceedings stemmed from a report submitted by the Crime Investigation Department (CID) of Jammu and Kashmir Police, which alleged that the foundation’s activities were fraudulent, deviated from its declared objectives and were prejudicial to the sovereignty, integrity and security of India.

Acting on the CID report, the Ministry of Corporate Affairs, through the Director General of Corporate Affairs, directed the Regional Director (Northern Region-II), Chandigarh, in March to initiate winding-up proceedings against the company under the Companies Act. The communication also sought action to freeze and attach the assets of the foundation’s directors and key managerial personnel.

The tribunal observed that material placed on record prima facie suggested that the company had been incorporated in April 2025 shortly after the institution, in its earlier form, was denied security clearance. It also took note of allegations that the management and control of the organisation continued to remain with individuals associated with Jamaat-e-Islami (JeI).

The order further referred to representations made before authorities in which the management reportedly acknowledged that records and activities continued to be maintained under the names of earlier trust entities alongside the Section 8 company. According to the tribunal, this pointed towards an apparent attempt to create ambiguity regarding the organisation’s identity and evade regulatory scrutiny.

On April 27, the Divisional Commissioner, Kashmir, declared Siraj-ul-Uloom an unlawful association under the UAPA following a dossier submitted by the Senior Superintendent of Police, Shopian. Subsequently, authorities attached the institution and restricted access to its premises.

The latest action by the NCLT is being viewed as a significant enforcement measure by the Union Ministry of Corporate Affairs in Jammu and Kashmir, particularly in cases involving allegations linked to national security.

The matter has been listed for further hearing before the tribunal on July 13.